Piero Cipollone, ECB Executive Board member, explains the digital euro’s purpose, timeline, benefits for citizens and small businesses, and measures to ensure financial stability and privacy.
In an interview with the Cyprus News Agency conducted on February 6, 2026, Piero Cipollone, Member of the Executive Board of the European Central Bank (ECB), discussed the digital euro initiative.
The ECB has not yet issued a digital euro and will do so only once legislation is in place. The digital euro aims to provide a digital version of cash, preserving citizens’ freedom to pay with central bank money, especially online where cash cannot be used.
The digital euro offers simplicity, enabling payments across Europe with one device, and includes offline functionality for use without internet or electricity. It addresses market fragmentation and enhances resilience by reducing reliance on non-European payment providers, which currently process nearly 70% of card transactions.
For small economies like Cyprus, the digital euro could lower transaction costs for merchants, as ECB scheme fees will be eliminated, and increase competition among payment providers.
The ECB is progressing with legislation, with a proposed schedule aiming for legislative approval by the end of 2023, and plans to start a pilot in 2027. The digital euro could be issued by mid-2029 if legislation is enacted.
To address bank liquidity concerns, safeguards include non-remuneration of the digital euro, a waterfall payment solution, holding limits, and restrictions to physical persons only. These measures aim to prevent financial instability.
Privacy is a core principle; online transactions will be encrypted and not linked to individuals, with data remaining with banks. Offline transactions will be visible only to payer and payee, ensuring high privacy standards.
The ECB does not target exchange rates but considers them in inflation projections. The euro has remained around 1.17-1.18 against the dollar in early 2026.
